ETFs the Preferred Investment During Credit Crisis

November 30, 2009 at 6:00 am by Tom Lydon      Bookmark and Share

110_F_6643348_CkUg4dy3CUsfVwyZw3UBrVH6JFuNPIhR An 11-year study has revealed some interesting findings about the usage of exchange traded funds (ETFs). In particular, it revealed that the use of the funds accelerated during the credit crisis of 2008. Why?

The recent report from Barclays Global Investors reported the number of institutions using ETFs has grown a whopping 1,673% since 1997, at a compound annual growth rate of 30%. According to the report, net sales of ETFs in 2008 were $270 billion, compared to an outflow of $117 billion from mutual funds. (Recession lessons for all of us).

Indications within the report also point to investors and portfolio managers  seeking ETFs to provide a broader range of sectors and markets to their clients, reports Chris Vellacot for Reuters.

ETFs remain most popular and used more frequently in the United States, with more than 2,000 institutions reporting holdings. (Advisors see benefits of ETFs, too).

For more stories about ETFs, visit our ETF 101 category.

Tags: ,

Subscribe to Our Daily E-mail Newsletter

Enter your e-mail address below to sign up for our daily e-mail newsletter, the Daily Market Update. We will never share your e-mail address with third parties.

Subscribe to Our RSS Feed

Click here to subscribe to our RSS feed

blog comments powered by Disqus

Recent TV Appearances

Now Available:

The ETF Trend
Following Playbook

ETF Trends' new book is now available. Click here for details. Or order online from one of these bookstores:
Amazon        Barnes and Noble


iMoney

ETF Trends' book iMoney is available. Click here for details. Or order online from one of these bookstores:
Amazon        Amazon